Ef­forts un­der­way to pre­pare Pak­istan Post meet­ing mod­ern needs

The Pak Banker - - BUSINESS -

Pak­istan Post, aim­ing to do a com­plete re­vamp, will in­tro­duce ser­vices to cope with chang­ing dy­nam­ics and ef­fec­tively com­pete in mod­ern en­vi­ron­ment. The Depart­ment is fo­cus­ing on three ma­jor points of ac­tion which are launch of mo­bile money trans­fer, launch of lo­gis­tic com­pany and re­brand­ing of Pak­istan Post.

One must know that in the last decade with rise of pri­vate courier com­pa­nies and their syn­ergy with the bur­geon­ing e-com­merce in­dus­try, it has be­come an in­creas­ingly tough mar­ket. In ad­di­tion, smart- phones, apps, emails and mo­bile fi­nan­cial ser­vices have done the re­main­ing dam­age to Pak­istan Post.

As per pre­sen­ta­tion given to higher au­thor­i­ties for re­vamp­ing Pak­istan Post, the first point was Mo­bile Money So­lu­tion for which a sig­nif­i­cant in­vest­ment has been pro­posed for ex­ist­ing 3200 post of­fices and roughly 9,000 agents. It in­cludes hard­ware, soft­ware, train­ing of postal hu­man re­source staff, ad­ver­tise­ment of the new prod­uct and con­nec­tiv­ity charges. Within 2 years and hope­fully a 20% mar­ket share, Pak­istan Post is look­ing to earn up to Rs. 5 bil­lion in rev­enue through the mo­bile money ser­vice.

The strat­egy pur­sued in this re­gard is that of part­ner­ship. For a slice of the rev­enue, Pak­istan Post would be pro­vided with an end to end so­lu­tion that main­tains mar­ket stan­dards and is run by the part­ner. The pri­vate part­ner would also help the Pak­istan Post to re­brand money re­mit­tance so­lu­tion by pro­vid­ing hard­ware, soft­ware, train­ing and ad­ver­tise­ment.

The pre­sen­ta­tion fur­ther re­vealed lo­cal e-com­merce mar­ket is cur­rently worth around 80-100 mil­lion dol­lars per year and within next few years, it is ex­pect­ing the num­ber in the bil­lions. In con­trast, the courier mar­ket is worth Rs. 30 bil­lion as per Pak­istan Post's es­ti­mates. As e-com­merce blos­soms, so will the courier mar­ket and its piece of the pie the com­pany is tar­get­ing.

For this pur­pose, Pak­istan Post is aim­ing to launch a fully owned lo­gis­tics com­pany in part­ner­ship with pri­vate sec­tor part­ners for in­vest­ment on rev­enue shar­ing ba­sis. An in­vest­ment of Rs. 800 mil­lion will be made in ar­eas in­clud­ing GPS en­abled truck­ing fleet, ware­house, dis­tri­bu­tion chan­nels, In­for­ma­tion Tech­nol­ogy (IT) and brand recog­ni­tion.

With re­gard to re­brand­ing Pak­istan Post, it was re­vealed that a much needed do over of Pak­istan Post is also part of re­form agenda. It in­cludes de­vel­op­ment of brand as a cen­ter of tech­nol­ogy and con­ve­nience as a sub­se­quent up gra­da­tion of fa­cil­i­ties and ap­pear­ances will fol­low along with prepa­ra­tion and adop­tion of medium and long term postal poli­cies. The whole process is sought to be car­ried out in a trans­par­ent man­ner and for this pur­pose, ex­pres­sions of in­ter­est will be in­vited for all three projects through PPRA site as well as na­tional news­pa­pers. With the new re­form agenda, Pak­istan Post is aim­ing to dou­ble its rev­enue to 900 mil­lion per an­num in two fi­nan­cial years. A growth rate of 15 per cent is be­ing tar­geted in suc­ceed­ing three years.

The com­pre­hen­sive and wide rang­ing re­form plan just goes to show how fast the busi­ness sit­u­a­tion in Pak­istan is chang­ing. Tra­di­tional ser­vices like postal ser­vices have been caught out with emerg­ing e-com­merce in­dus­try and new play­ers in the mar­ket. With busi­ness as usual on a steady de­cline, a trans­for­ma­tion was in or­der and it is go­ing to help re­vive Pak­istan Post and make it more com­pet­i­tive.

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